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38 Studios will face no federal criminal charges

Bankrupt gamemaker 38 Studios will not face federal criminal charges, according to a report in The Washington Post.

U.S. Attorney spokesman Jim Martin told The Associated Press that his office found that 38 Studios did not break any federal laws. That said, what's left of the company is still subject to an investigation being conducted by Rhode Island police to determine whether state laws were violated.

38 Studios folded last May despite a $75 million state loan guarantee. The bankruptcy left Rhode Island "on the hook for more than $100 million," which includes the bonds and interest.